Newly approved tax increases in Illinois will result in a nearly $51 million hit to the Wisconsin state budget.
That's the conclusion in a memo by Wisconsin's nonpartisan Legislative Fiscal Bureau released to members of the Legislature's budget committee on Tuesday.
Wisconsin is adversely affected by the $5 billion in tax increases approved in Illinois because of an income tax reciprocity agreement and higher income tax credits that Wisconsin residents will be able to claim.
The Fiscal Bureau says that payment combined with the higher credits will result in Wisconsin owing Illinois $51 million more over the next two years.
The bad news comes as Republicans who control the Wisconsin Legislature continue to struggle to reach a deal on a new two-year budget.
